Uzbekistan launches geological exploration at three oil and gas blocks in Afghanistan

The project is being implemented by Uzbek Overseas Geology Company, which has obtained a license to search for hydrocarbon resources as well as iron and copper deposits.

Photo: Ministry of Mining Industry and Geology

Uzbek Overseas Geology Company has commenced exploration activities at the Muhammad – Jandagar, Shamar, and Ahmadabad blocks in Afghanistan. The work is aimed at identifying hydrocarbon reserves alongside potential iron and copper deposits.

The launch ceremony was attended by Mawlawi Nurul Hadi Abu Idris, Deputy Governor of Balkh Province for Economic Affairs, and Khayitboy Omonov, Director General of the company. The company received the relevant license following negotiations with the Afghan side.

The project is being carried out under a cooperation agreement previously signed between the Ministry of Mining Industry and Geology of Uzbekistan and the Ministry of Mines and Petroleum of Afghanistan. Both parties confirmed their readiness to further expand cooperation in the geological and mining sectors.

According to the Unified State Register of Enterprises and Organizations, Uzbek Overseas Geology Company was registered in February 2025. The company has an authorized capital of UZS 12.97 billion and is engaged in mining activities not classified elsewhere.

Its founders are Uzbek Geological Exploration JSC and Uzbekgeofizika, each holding a 50 percent stake.

Expanding Uzbek interest in Afghanistan’s hydrocarbons sector

Uzbek companies have shown increasing interest in Afghanistan’s hydrocarbon sector in recent years. In May 2024, several Uzbek firms explored opportunities for oil production projects in Afghanistan, including Eriell Group.

In October 2024, the Ministry of Mines and Petroleum of Afghanistan and an unnamed Uzbek company signed a 10 year contract for gas exploration and production at the Toti-Maidan field in Jowzjan Province. The signing ceremony was attended by Bahodirjon Sidikov, then-Chairman of Uzbekneftegaz.

Under the agreement, the investor is expected to invest $100 million in the first year and approximately $1 billion over the 10 year period. During the first two years, the Uzbek investor plans to generate 100 MW of electricity from the extracted gas.

In February 2025, Deputy Prime Minister Jamshid Khodjaev stated that Uzbek investors were ready to cooperate with Afghanistan in oil and gas exploration and production, as well as invest in the industrial sector, including the construction of a cement plant in Samangan Province.

He also noted significant progress in the exploration of the Toti-Maidan gas field, where production operations are expected to begin in the near future.